A Mayer Brown research titled "The Next Organization" polled 197 financial services industry professionals and found that cybersecurity is essential for future-proofing companies. Because their company is susceptible to cyberattacks, almost 80% of leaders in the financial services industry feel that they are unable to plan.

Finance’s cyber concern

Cyberattack risk is cited by a startling 79% of financial institutions and 77% of investment businesses as the main issue influencing their transformation strategies. This concern is warranted since, according to CrowdStrike, cloud intrusions have increased by 75%.

AI-enhanced cloud computing is a major factor in the transformation of operations. However, maintaining information off-premise has a lot of dangers because of the strict laws governing financial data. For example, Equifax settled for more than US$1 billion in fines after 150 million customers were compromised in a data breach in 2017.

Leader of Mayer Brown's worldwide practice for cybersecurity and data privacy, Raj De, observes, "We're seeing more and more sophisticated cyberattacks target businesses, organizations, and countries. There are many moving components in this situation, and companies need to manage the ever-changing and complicated cybersecurity landscape."

Goals and realities still differ, even while 77% of investment companies and 69% of CEOs in financial institutions agree that strong defenses against cyberattacks and AI developments are crucial. Significantly, 72% of executives in financial institutions and 73% of executives in investment firms acknowledge that their companies find it difficult to stay up with the quick advancements in AI.

Securing finance’s future

A Trend Micro analysis reveals a concerning communication gap between C-suites and IT security directors, with IT leaders feeling under pressure to minimize cyber dangers in boardrooms, despite the growing significance of cybersecurity. This emphasizes the complex issue ahead, especially in light of the fact that the cyber insurance market frequently fails to pay breach expenses.

Cyberdefenses fueled by AI provide hope. Mayer Brown partner Oliver Yaros says, "AI-powered cybersecurity tools and systems can provide more advanced data protection, diluting threats by recognising patterns, automating processes, and highlighting anomalies."

According to the survey, 69% of financial institutions and 77% of investment businesses believe that financial institutions must keep up with AI developments and exhibit resilience against cyberattacks. While realizing the threat is critical, taking action is much more so. Recognizing the connection between cybersecurity and growth, financial organizations must rectify their deficiencies in order to prevent future financial consequences.